Ok so it looks like we may rent out our property but it won't cover mortgage

papermoney

I own the property that I want to sell.
My partner owns the other.
I lived in the property with my ex husband and when we divorced I decided to sell (it's in my sole name).
I moved in with my partner.
So we have 2 houses between us.

I do want shot of it but only can take 20k out on second property.

The mortgage is 134k
Redemption is 6k
Solicitors about 1k-1.5k
Estate agent roughtly 1.5k (depending on what house sells for)
So if I sold for 123k-125k I could do it. But would struggle if it sold for anything less.

GracieP

I think you will have to drop the price below £120k so it is below the stamp duty threshold. However you can save money by using online conveyancing services such as Legalmove. When I sold my house through them the fee was under £500. You could also use an online EA which would cost less than £500, as the EA you have now sounds clueless.

papermoney

Isn't stamp duty 125k?
I thought it was.
I can't afford to sell for less than 123k I don't have the money to do so.
I know what you are saying about not using a local EA but do people really look at privately advertised ones?
I'm on a seaside coast with very poor employment aswell, so i'm sure that makes a difference.
It will cost me £465 approx to buy the HIPS off the EA aswell. We already have a deal with them that their fee is 1.4 % No VAT - which is fairly good.
If I put it on at 125k people will only want to knock me down.
So maybe 128k would be best?

justpurchased

What town? If it is the Cheapest in its localilty like for like it will go.

papermoney

It's Skegness. It's the second cheapest house in the area comparing like for like except mine has a converted garage and the other one has an internal garage, all others that are of similar design in the same area are all 6k plus more than mine. There are obviously others cheaper by 10k or so but not in nice areas.

justpurchased

Make it the cheapest like for like and you will always get the first viewing people want cheap quality propertys at the min.

Alleycat

I feel sorry for the poor potential tenants. What happens if you fail to maintain mortgage payments and get repossessed? They will be out on their ears with little notice! Or if there are repair works need doing and you don't have the spare cash to carry them out? They have to live with no heating/hot water/other problems until you have the desposable cash to get it sorted.

If you are going to go down the road of letting the property out, please make sure you have a decent contingency fund. These are peoples lives we are talking about, not just cash cows to help make ends meet.

Twopints

Alleycat wrote: »

I feel sorry for the poor potential tenants. What happens if you fail to maintain mortgage payments and get repossessed? They will be out on their ears with little notice! Or if there are repair works need doing and you don't have the spare cash to carry them out? They have to live with no heating/hot water/other problems until you have the desposable cash to get it sorted.

If you are going to go down the road of letting the property out, please make sure you have a decent contingency fund. These are peoples lives we are talking about, not just cash cows to help make ends meet.

But then the tenants are only paying half of what the mortgage costs so they can afford to have a contingency fund of their own.

Alleycat

Twopints wrote: »

But then the tenants are only paying half of what the mortgage costs so they can afford to have a contingency fund of their own.

Just because their mortgage cost is over £800 per month, doesn't mean that this is the average market rental price for the area. Why should a tenant when they rent a property for a fixed term have to make sure they have a contigency fund in case their landlord doesn't pay the mortgage? Also, who knows what the finances are of those who end up renting the place. They may not actually have any spare cash to save.

Too many accidental landlords do not realise that this is a business they are entering into not a hobby.

moneysavinmonkey

Twopints wrote: »

But then the tenants are only paying half of what the mortgage costs so they can afford to have a contingency fund of their own.

?? not necessarily - many are renting because they can't afford the mortgage.